BERWYN, Pa.--(BUSINESS WIRE)--Triumph Group, Inc. (NYSE: TGI)
today reported that net sales for the second quarter of fiscal year
ending March 31, 2012 totaled $790.5 million, a three percent increase
from last year’s second quarter net sales of $768.2 million, all of
which was organic. Net sales for the quarter reflected less
non-recurring revenue principally related to development of the Boeing
747 as compared to the prior year quarter. In addition, there were two
fewer 747 shipments in the current quarter related to Boeing’s
previously announced pause in production. Excluding the impact of both
of these items, year over year revenue growth would have been in excess
of ten percent. Income from continuing operations for the second quarter
of fiscal year 2012 increased forty percent to $58.6 million, or $1.13
per diluted share, versus $41.8 million, or $0.84 per diluted share, for
the second quarter of the prior fiscal year. The quarter’s results
included $1.1 million pretax ($0.7 million after tax or $0.02 per
diluted share) of integration expenses related to the acquisition of
Vought Aircraft Industries (now Triumph Aerostructures-Vought Aircraft
Division). The prior fiscal year’s quarter included $1.3 million pretax
($0.8 million after tax) of integration costs associated with the Vought
acquisition. Excluding these costs, income from continuing operations
for the quarter was $59.3 million, or $1.15 per diluted share. The
number of shares used in computing diluted earnings per share for the
second quarter of fiscal year 2012 was 51.6 million shares and reflected
the previously announced two-for-one stock split.

Net sales for the first six months of fiscal year 2012 were $1.636
billion, a thirty-nine percent increase from net sales of $1.175 billion
last fiscal year. Income from continuing operations for the first six
months of fiscal year 2012 increased 105 percent to $109.5 million, or
$2.13 per diluted share, versus $53.4 million, or $1.22 per diluted
share, in the prior year period. The year to date results included $1.6
million pretax ($1.0 million after tax or $0.02 per diluted share) of
integration expenses related to the Vought acquisition. The prior fiscal
year period included $18.7 million pretax ($14.0 million after tax) of
transaction and integration expenses associated with the Vought
acquisition. Excluding these costs, income from continuing operations
for the first six months of fiscal year 2012 was $110.5 million, or
$2.15 per diluted share. Net income for the first six months of fiscal
year 2012 increased 105 percent to $108.7 million, or $2.11 per diluted
share, versus $52.9 million, or $1.21 per diluted share, in the prior
year period. During the six months ended September 30, 2011, the company
generated $122.1 million of cash flow from operations before Triumph
Aerostructures’ pension contribution of $61.0 million; after this
contribution, cash flow from operations was $61.1 million. The year to
date cash flow was negatively impacted by a $51.0 million contractual
payment that was due at the end of September but not received until the
beginning of October.

Segment Results

Aerostructures

The Aerostructures segment reported net sales for the quarter of $588.0
million compared to $577.7 million in the prior year period, an increase
of two percent, all of which was organic. The segment’s revenue for the
quarter reflected less non-recurring revenue principally related to
development of the Boeing 747 as compared to the prior year quarter. In
addition, there were two fewer 747 shipments in the current quarter
related to Boeing’s previously announced pause in production. Excluding
the impact of both of these items, year over year revenue growth would
have been in excess of ten percent. Operating income for the second
quarter of fiscal year 2012 was $92.5 million compared to $70.0 million
for the prior year period, an increase of thirty-two percent. The
segment’s operating margin for the quarter increased to sixteen percent,
a 360 basis points improvement over the prior year period.

Aerospace Systems

The Aerospace Systems segment reported net sales for the quarter of
$133.8 million, compared to $123.5 million in the prior year period, an
increase of eight percent, all of which was organic. Operating income
for the second quarter of fiscal year 2012 was $22.6 million compared to
$17.1 million for the prior year period, an increase of thirty-two
percent. Operating margin for the quarter was seventeen percent, an
increase of 300 basis points over the prior year period. The segment’s
operating results included $0.5 million of legal expenses associated
with the ongoing trade secret litigation.

Aftermarket Services

The Aftermarket Services segment reported net sales for the quarter of
$70.5 million, compared to $68.7 million in the prior year period, an
increase of three percent, which brings year to date sales growth to ten
percent. All of the segment’s sales were organic. Operating income for
the second quarter of fiscal year 2012 was $7.0 million compared to $8.2
million (which included a gain of $0.7 million on the sale of certain
intellectual property) for the prior year period. Operating margin for
the quarter was ten percent.

Outlook

Commenting on the company’s performance and its outlook for fiscal year
2012, Richard C. Ill, Triumph’s Chairman and Chief Executive Officer,
said, “This was another strong quarter for Triumph, driven by
significant operating income growth and a 250 basis point expansion in
year over year operating margin. We are particularly proud of the strong
operating margins we generated in our Aerospace Systems segment as well
as our Aerostructures segment, both of which were a result of good
execution. Our Aerostructures segment margins also benefited from the
synergies we realized from the Vought acquisition.”

“Based on our strong year to date performance, current production rates
and a weighted average share count of 51.6 million shares, we are
reaffirming our revenue guidance for fiscal year 2012 of $3.2 to $3.5
billion and are raising our full year earnings guidance to earnings per
share from continuing operations of approximately $4.50 per diluted
share excluding integration costs.”

As previously announced, Triumph Group will hold a conference call
tomorrow at 8:30 a.m. (ET) to discuss the fiscal year 2012 second
quarter results. The conference call will be available live and archived
on the company’s website at http://www.triumphgroup.com.
A slide presentation will be included with the audio portion of the
webcast. An audio replay will be available from November 1st
until November 7th by calling (888) 266-2081 (Domestic) or
(703) 925-2533 (International), passcode #1554799.

Triumph Group, Inc., headquartered in Berwyn, Pennsylvania, designs,
engineers, manufactures, repairs and overhauls a broad portfolio of
aerostructures, aircraft components, accessories, subassemblies and
systems. The company serves a broad, worldwide spectrum of the aviation
industry, including original equipment manufacturers of commercial,
regional, business and military aircraft and aircraft components, as
well as commercial and regional airlines and air cargo carriers.

Statements in this release which are not historical facts are
forward-looking statements under the provisions of the Private
Securities Litigation Reform Act of 1995, including statements of
expectations of or assumptions about future aerospace market conditions,
aircraft production rates, financial and operational performance,
revenue and earnings growth, and earnings results for fiscal 2012. All
forward-looking statements involve risks and uncertainties which could
affect the company’s actual results and could cause its actual results
to differ materially from those expressed in any forward looking
statements made by, or on behalf of, the company.

Further information regarding the important factors that could cause
actual results to differ from projected results can be found in
Triumph’s reports filed with the SEC, including our Annual Report on
Form 10-K for the fiscal year ended March 31, 2011.

FINANCIAL DATA (UNAUDITED)

TRIUMPH GROUP, INC. AND SUBSIDIARIES

(in thousands, except per share data)

Three Months Ended

Six Months Ended

September 30,

September 30,

CONDENSED STATEMENTS OF INCOME

2011

2010

2011

2010

Net sales

$

790,528

$

768,200

$

1,635,591

$

1,175,409

Operating income

108,456

*

86,117

* *

213,836

*

118,967

* *

Interest expense and other

17,671

23,459

44,133

35,250

Income tax expense

32,221

20,837

60,235

30,316

Income from continuing operations

58,564

41,821

109,468

53,401

Loss from discontinued operations, net of tax

(76

)

(281

)

(765

)

(489

)

Net income

$

58,488

$

41,540

$

108,703

$

52,912

Earnings per share - basic:

Income from continuing operations

$

1.20

$

0.87

$

2.25

$

1.28

Loss from discontinued operations

(0.00

)

(0.01

)

(0.02

)

(0.01

)

Net income

$

1.20

$

0.86

$

2.24

^

$

1.26

^

Weighted average common shares outstanding - basic

48,697

48,115

48,562

41,845

Earnings per share - diluted:

Income from continuing operations

$

1.13

$

0.84

$

2.13

$

1.22

Loss from discontinued operations

(0.00

)

(0.01

)

(0.01

)

(0.01

)

Net income

$

1.13

$

0.83

$

2.11

^

$

1.21

Weighted average common shares outstanding - diluted

51,646

50,036

51,478

43,782

Dividends declared and paid per common share

$

0.04

$

0.02

$

0.06

$

0.04

^

Difference due to rounding.

*

Includes $1,144 and $1,604, respectively, of integration expenses
associated with the acquisition of Vought for the three and six
months ended September 30, 2011.

* *

Includes $1,283 and $18,650, respectively, of acquisition and
integration expenses associated with the acquisition of Vought for
the three and six months ended September 30, 2010.

FINANCIAL DATA (UNAUDITED)

TRIUMPH GROUP, INC. AND SUBSIDIARIES

(dollars in thousands, except per share data)

BALANCE SHEET

Unaudited

Audited

September 30,

March 31,

2011

2011

Assets

Cash and cash equivalents

$

34,750

$

39,328

Accounts receivable, net

364,590

374,491

Inventory, net of unliquidated progress payments of $121,389 and
$138,206